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Why Were Workers Whipped? Pain in a Principal-Agent Model

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Author Info
Chwe, Michael Suk-Young
Abstract

One reason a person hurts another is to get that person to do something. This paper uses a model to show that threatening pain can be rational and that pain is inflicted upon people who are poor in the sense of having bad alternatives. The model corrects a confusion in previous models of slavery; gives an explanation of why child, and not adult, laborers were beaten during the industrial revolution; and prompts a discussion of the dangers of rational-choice modeling. Copyright 1990 by Royal Economic Society.

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Publisher Info
Article provided by Royal Economic Society in its journal The Economic Journal.

Volume (Year): 100 (1990)
Issue (Month): 403 (December)
Pages: 1109-21
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Handle: RePEc:ecj:econjl:v:100:y:1990:i:403:p:1109-21

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  1. Sherstyuk, Katerina, 1993. "Firing in Non-Repeated Incentive Contracts," Working Papers 811, California Institute of Technology, Division of the Humanities and Social Sciences. [Downloadable!]
  2. Debra J. Aron & Paul Olivella, 1991. "Bonuses and Penalties as Equilibrium Incentive Devices, with Application to Manufacturing Systems," Discussion Papers 932, Northwestern University, Center for Mathematical Studies in Economics and Management Science. [Downloadable!]
    Other versions:
  3. Francis Bloch & Vijayendra Rao, 2002. "Terror as a Bargaining Instrument: A Case Study of Dowry Violence in Rural India," American Economic Review, American Economic Association, vol. 92(4), pages 1029-1043, September. [Downloadable!]
    Other versions:
  4. Jonathan Conning, 2004. "The Causes of Slavery or Serfdom and the Roads to Agrarian Capitalism: Domar's Hypothesis Revisited," Hunter College Department of Economics Working Papers 401, Hunter College: Department of Economics. [Downloadable!]
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